Logbook loans Ė the details that other financial providers won't tell you
Without a doubt, if you own a vehicle, a logbook loan is possibly the quickest way to secure some cash against the value of that vehicle. And these loans are readily available, online and at loan providers in your city.
But is there more information that you should know about logbook loans? Yes, there is and often, unscrupulous providers will not fill you in on the bigger picture. At HB Loans, we believe that even though these loans are our bread and butter, we must inform all clients of all aspects including their costs and the risks that are associated with them. Letís take a closer look.
The cost of a logbook loan
Many banking institutions and financial gurus are lambasting logbook loans left, right and centre. Letís be honest, it is pretty funny that they are. In todayís day and age, people need loans in an emergency and we donít see banks or other financial institutions running to help individuals in the United Kingdom who suffer from bad credit yet need a loan product of some sort.
That said, there are costs involved with logbook loans and at HB Loans, we place these on the table, in black and white and inform you of them. Unlike some other loan providers, we donít hide them away in the fine print.
So what are these costs? Well, a logbook loanís representative APR is around 400% which is higher than a personal loan from a banking institution. It is far lower however than many other similar loans, for example, a payday loan. The representative APR applied to your loan may vary and is based on a number of factors that we will explain to you before you sign the loan contract.
What are the risks associated with a logbook loan?
Of course, there are risks associated with taking out a logbook loan. The most obvious, however, is the possibility of having your vehicle taken away from you and sold to cover our costs should you stop paying your loan instalments. Believe us when we say that this is something we prefer not to do, but if the day comes where we have to do it, we will not hesitate.
That might sound a little heavy handed, but rest assured that we give you all the chances you need to make amends for a missed payment. In fact, we wonít repossess your car after just one. It takes numerous missed payments before we can legally act. So if you are struggling, come to us and we can try to renegotiate the loan terms or make another plan to help you out. Just donít miss a payment without ever telling us.
We will never ever lend you more than you can safely pay back either. The thing is, not many high street banks and financial gurus will tell you that a logbook loan can also be used to help get your credit rating back on track. Pay off one without missing a payment and you can be sure that your credit rating will improve. They are also a great option for people who have no credit history and would like to start building one up. Often, banks will not give someone who has just left university and is starting their working life a loan. This is because they have no credit history whatsoever to look back on. Paying off a logbook loan can help you build up your credit history.
Rest assured, we always tell you like it is when it comes to any of our loan products. So in those times that you need money in a hurry, a logbook loan is a great option.